News | HUD Releases the Final NSPIRE Rule

See the bottom of this post for links to the new NSPIRE Notice and other resources. 

This year, the entire affordable housing industry has been watching HUD's final development stages of their new inspection protocol NSPIRE. Today HUD released the NSPIRE Final Rule. What has changed from the proposed Rule?

When is the Final Rule Effective?

• July 1, 2023 - Public Housing inspections begin
• October 1, 2023 – Housing Choice Vouchers, Project-based Vouchers, and Multifamily inspections begin

What has Changed?

The Notice is over 200 pages, so there are abundant changes. However, HUD has focused on some key areas of change. According to HUD, substantive changes include:

1. New Self-Inspection Requirement and Report. PHAs and Owners will be required to conduct self-inspections of all units at least annually and correct all identified deficiencies. If the property scores under 60, these reports must be provided to HUD. Records related to the self-inspection should be maintained for three years. Note: The proposed Rule had owners submitting these online, so the new requirement to simply retain the records without uploading them is less involved. 
2. Timeline for Deficiency Correction. HUD clarified the timeline for the correction of health or safety deficiencies. For "life-threatening" and "severe" deficiencies, the PHA or Owner must correct the deficiency within 24 hours after receiving the inspection report, and upload evidence of that correction within 72 hours to HUD. Note: "Moderate" and "low" deficiencies will not require proof that repairs are made to be provided to HUD after an inspection. However, “low” rated issues previously did not require any repair to be completed. Under the Final Rule, it is required that repairs be done within 60 days of the inspection.
3. New Affirmative Requirements. HUD developed new “affirmative standards” for all units that participate in HUD’s rental assistance programs. These include basic requirements for habitability – like kitchens and flushable toilets – but also important safety concerns like Ground Fault Circuit Interrupter (GFCI) outlets, a permanent heating source, and safe drinking water.
4. Tenant Involvement. HUD will allow tenants to make recommendations regarding units to be inspected. HUD will require that the PHA or Owner correct all identified deficiencies within established timeframes and provide inspection results to residents.

Other changes in NSPIRE, as compared to the past UPCS standard, include:

1. HUD has committed to reviewing the NSPIRE standards at least every 3 years
2. Retaining the 3-2-1 Rule that determines how often a property is inspected based on the last inspection score. 
3. Changes to deficiency categories have been implemented. These are now: Life-threatening, Severe, Moderate, Low.
4. A Post-Inspection Report has been introduced.
5. Smoke detector and carbon monoxide alarm requirements have been included. 
6. The occupancy requirement related to children of the opposite sex has been removed.
7. The elimination of many cosmetic deficiencies.

Supporting Resources

The HUD announcement is HERE.

The Final Rule is HERE.

HUD's NSPIRE page is HERE.